‘Suggestion for all parents’
In addition to outlining his philanthropic plans, Buffett offered parenting advice about handling finances — applicable to families of any wealth level.
“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” he wrote.
The reasoning, he explained, is to ensure that each child understands the logic behind your decisions and the responsibilities they will inherit after your passing. By fostering transparency, parents can minimize potential misunderstandings or conflicts down the road.
“You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond,” he cautioned.
Buffett further advised parents to remain open to feedback from their children, suggesting that they “adopt those [suggestions] found sensible.” Reflecting on his own experience, he shared that he has often adopted his children’s suggestions over the years.
Buffett also highlighted the potential risks of poor estate planning.
“Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry. Jealousies, along with actual or imagined slights during childhood, became magnified, particularly when sons were favored over daughters, either in monetary ways or by positions of importance,” Buffett wrote.
Following Buffett’s advice has never been easier in today’s digital age. Platforms like LegalZoom have made legal services accessible and affordable, enabling individuals to create essential documents like wills, living trusts, and comprehensive estate plans with support from licensed attorneys.
LegalZoom’s user-friendly tools allow you to customize your estate plan to meet your unique needs, ensuring your assets are distributed as intended and reducing the risk of disputes. A basic will starts at just $99.
With a 4.3 rating on TrustPilot, LegalZoom can give you peace of mind knowing that your legal documents will be filed correctly and accepted in your state.
If you aren’t sure where to begin, you can also call LegalZoom for free to figure out exactly what you need and how to get started.
‘The best thing to do’
Buffett built his wealth by investing in winning companies. While he’s legendary at picking stocks, he’s an even bigger advocate for a simpler, tried-and-true strategy: investing in an S&P 500 index fund.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” he famously stated. This straightforward approach gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the need for constant monitoring or active trading.
Buffett’s deep belief in this strategy is evident in his posthumous instructions: he has directed that 90% of his wife’s inheritance be invested in “a very low-cost S&P 500 index fund” after his passing.
The beauty of this approach is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
